Most Entrepreneurial States: Where Small-Business Loans Rule and Startups Abound

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The real estate mantra — location, location, location — is just as relevant for small-business owners. Where you decide to set up shop can be critical to your long-term success.

If you can choose where to start your small business, which regions should you consider? To determine the most entrepreneurial states, NerdWallet analyzed information from the U.S. Census Bureau’s County Business Patterns and data on Small Business Administration loans.

In addition to location, being able to finance your business, whether through an SBA loan, venture capital or online lenders, is critical to getting your idea off the ground. Each of our top 10 states is a leader in financing for entrepreneurs.

Key takeaways

Follow the money. Residents in Utah and Massachusetts have some of the highest rates of receiving SBA-guaranteed loans, while businesses in Connecticut and Georgia are approved for some of the largest SBA loans on average.

Big ventures. Eight of the top 10 states are among the top 10 recipients of venture capital funding per resident.

Mountain West soars. Entrepreneurs in Utah received 57 SBA loan guarantees per 100,000 residents, the most in the country. Colorado has 2.81 small businesses (defined as less than 50 employees) per 100 residents, one of the highest rates in the U.S.

Coasts dominate. The remaining eight of the top 10 entrepreneurial states are in the nation’s coastal regions. The highest-ranking state that doesn’t border the Atlantic or Pacific oceans (excluding Utah and Colorado) is Texas at No. 14.

Most entrepreneurial states: Where small-business loans rule and startups abound

The map shows the overall score for each state and Washington, D.C., that was used to determine the most entrepreneurial states.

To see detailed data, click on a category above the map and hover over a state.

Most entrepreneurial states data

Scroll through the table to see the data for all 50 states and Washington, D.C.

State

SBA loans per 100,000 people in 2015

Growth of SBA loans per 100,000 people 2012-2015

Average
SBA loan
size
2014-2015

Venture capital
funding per
100,000 people
2014- 2015

Small businesses
per 100
people in 2013

Small-business
growth
2010-2013

Score

Utah

57.43

0.70%

$278,754

$33,747,855

2.36

4.30%

71.68

Colorado

43.45

50.20%

$271,620

$17,970,842

2.81

1.60%

66.18

California

32.19

60.60%

$410,345

$84,233,988

2.16

2.60%

63.76

Connecticut

23.77

15.20%

$523,091

$9,852,508

2.32

-1.10%

61.57

New York

25.43

11.40%

$383,021

$29,987,038

2.58

2.40%

60.63

Washington

32.47

45.30%

$308,419

$18,979,397

2.42

0.30%

59.39

Florida

22.3

56.40%

$360,750

$4,309,211

2.49

3.70%

59.35

Washington, D.C.

12.45

-21.20%

$369,325

$33,824,050

3.11

1.60%

57.42

Georgia

24.62

60.60%

$523,949

$6,279,122

2.06

-0.10%

57.35

Massachusetts

47.74

50.30%

$157,694

$78,705,379

2.42

1.30%

56.36

Maine

44.88

67.00%

$182,232

$1,489,600

2.91

-0.90%

54.07

Alaska

24.98

18.70%

$503,067

$0

2.67

2.50%

53.83

Oregon

31.16

45.40%

$281,557

$3,901,982

2.65

0.90%

53.62

Texas

25.16

41.90%

$390,784

$5,390,080

1.94

4.40%

53.43

Delaware

26.19

35.80%

$401,370

$5,311,998

2.48

-0.80%

52.95

Vermont

55.22

-32.30%

$154,963

$2,753,279

3.25

-1.70%

52.71

Virginia

14.6

24.20%

$405,753

$5,961,662

2.21

0.10%

51.97

New Hampshire

52.83

0.80%

$137,281

$13,729,749

2.67

-0.90%

51.97

Wyoming

25.34

16.00%

$268,945

$0

3.43

1.80%

51.72

Montana

38

5.30%

$242,589

$0

3.49

1.40%

51.09

Idaho

55.55

44.90%

$207,020

$2,936,749

2.58

-1.00%

50.15

Pennsylvania

20.77

16.30%

$346,413

$5,921,936

2.19

0.00%

49.76

Illinois

24.49

37.40%

$349,119

$7,397,737

2.31

0.20%

48.27

Arkansas

16.72

89.00%

$412,130

$731,504

2.08

-0.80%

48.20

North Dakota

44.36

-30.00%

$203,464

$953,370

3.15

9.80%

48.20

Minnesota

44.99

24.10%

$258,745

$5,091,310

2.54

0.30%

46.60

Maryland

18.74

31.80%

$367,575

$7,966,218

2.15

0.30%

46.15

New Jersey

25.35

22.40%

$278,351

$5,623,557

2.45

0.40%

45.69

Nevada

26.87

55.10%

$292,637

$1,021,486

2.04

1.70%

43.93

Rhode Island

48.52

37.20%

$149,543

$7,276,323

2.53

-2.00%

43.69

South Dakota

29.65

-15.40%

$289,188

$826,560

2.95

1.40%

43.48

South Carolina

12.42

35.60%

$507,535

$993,278

2.02

-0.80%

42.53

Arizona

25.79

38.40%

$363,086

$3,791,347

1.89

0.30%

42.37

North Carolina

14.56

10.20%

$428,306

$4,872,914

2.1

-0.20%

42.33

Nebraska

31.73

15.10%

$183,554

$5,834,235

2.68

1.20%

41.49

Oklahoma

20.53

33.10%

$314,841

$794,291

2.26

1.50%

40.94

Louisiana

13.03

3.20%

$394,420

$1,036,545

2.13

0.60%

40.81

Ohio

45.78

60.20%

$174,123

$2,504,797

2.02

-1.80%

38.25

Michigan

39.51

64.90%

$185,119

$2,072,457

2.08

-1.20%

38.21

Kansas

23.11

13.20%

$266,723

$2,816,784

2.41

-0.90%

37.31

Missouri

27.21

13.00%

$256,498

$2,155,407

2.36

0.10%

37.10

Alabama

15.38

12.60%

$349,951

$224,647

1.91

-2.00%

35.80

Tennessee

12.67

54.50%

$413,971

$2,398,019

1.89

-1.00%

35.40

Hawaii

53.96

119.40%

$72,465

$100,383

2.12

-1.40%

35.31

New Mexico

19.8

26.30%

$259,560

$3,202,858

2

-1.20%

34.77

Wisconsin

39.72

20.70%

$249,876

$1,504,232

2.25

-1.50%

34.64

Indiana

28.82

32.80%

$263,624

$1,249,354

2.05

-1.40%

33.80

Mississippi

18.97

2.00%

$280,949

$0

1.86

-1.70%

30.97

Kentucky

18.51

43.40%

$207,202

$787,908

1.94

-0.40%

29.41

Iowa

19.95

-10.80%

$227,041

$816,832

2.47

-0.50%

25.13

West Virginia

8.54

-22.40%

$204,114

$0

1.92

-3.10%

14.50

Methodology

NerdWallet analyzed all 50 states and Washington, D.C. The score for each location was determined by analyzing data from the U.S. Census Bureau, the Small Business Administration and a report by PricewaterhouseCoopers and the National Venture Capital Association. Our analysis examined:

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